Paula Owns Four Separate Activities

question 18

Multiple Choice

Paula owns four separate activities.She elects not to group them together as a single activity under the "appropriate economic unit" standard.Paula participates for 130 hours in Activity A, 115 hours in Activity B, 260 hours in Activity C, and 100 hours in Activity D.She has one employee, who works 125 hours in Activity D.Which of the following statements is correct?

• A)Activities A, B, C, and D are all significant participation activities.
• B)Paula is a material participant with respect to Activities A, B, C, and D.
• C)Paula is not a material participant with respect to Activities A, B, C, and D.
• D)Losses from all of the activities can be used to offset Paula's active income.
• E)None of these is correct.

---

Definitions:

Unnecessary Duplication

Redundant processes or activities that do not add value, leading to inefficiency and wasted resources.

Refusal To Accept Shipments

The act of rejecting delivery of goods or products, typically due to issues related to quality, accuracy, or terms of a contract.

Buyer-supplier Satisfaction Matrix

A tool used to evaluate and improve the relationship between buyers and suppliers by mapping out satisfaction levels of both parties.

Strategic Supply Management

The process of planning, implementing, and controlling the operations of the supply chain in a strategic manner to achieve competitive advantage.